Ship Fast Corporation sells its services for cash and on account. By selling on credit, Ship Fast cannot expect to collect 100% of its accounts receivable. Assume that at May 31, 2020, and 2019, respectively, Ship Fast reported the following on its balance sheet (adapted and in millions of US dollars): (Click the icon to view the balance sheet information.) During the year ended May 31, 2020, Ship Fast earned service revenue and collected cash from customers. Assume bad debt expense for the year was $380 million and that Ship Fast wrote off uncollectible receivables. Requirements Before preparing the T-accounts, record the journal entries for the transactions of Ship Fast for the year ended May 31, 2020. Requirement 2. Joumalize the transactions of Ship Fast for the year ended May 31, 2020. (Record debits first, then credits. Enter amounts in millions. Explanations are not required.) a. Service revenue on account, $37,953 million Journal Entry Date Accounts Debit Credit a. Accounts Receivable 37,953 Service Revenue b. Collections on account, $37,155 million Date b. Requirements 37,953 1. Prepare T-accounts for Accounts Receivable and Allowance for Uncollectibles, and insert the May 31, 2019, balances as given. Journal Entry Accounts Debit Credit 37155 37155 2. Journalize the following assumed transactions of Ship Fast for the year ended May 31, 2020. Explanations are not required. a. Service revenue on account, $37,953 million b. Collections on account, $37,155 million c. Bad debt expense, $380 million d. Write-offs of uncollectible accounts receivable, $362 million e. Recovered an accounts receivable, $2 million f. On May 1, Ship Fast received a two-month, 5%, $45 million note receivable from one of its large customers in exchange for the customer's past due account. Ship Fast made the proper year-end adjusting entry for the interest on this note. 3. Post your entries to the Accounts Receivable and the Allowance for Uncollectibles T-accounts. 4. Compute the ending balances for the two T-accounts, and compare your balances to the actual May 31, 2020, amounts. They should be the same. 5. Show what Ship Fast would report on its income statement for the year ended May 31, 2020. 6. Recommend several ways for Ship Fast to improve cash collections from receivables. Print Done - X